We study how domestic and global output gaps affect CPI inflation. We use a New-Keynesian Phillips curve framework …1-2017Q4 period. We find broadly that both global and domestic output gaps are significant drivers of inflation both in … output gaps on inflation. …

show that after the crisis the global output gap predicts the evolution of inflation in the Eurozone panel. On the other … inflation is the domestic output gap, specifically in the Eurozone panel. In the European Union panel and its peripheral …In this paper, we examine whether domestic or global output gap affects inflation in three panels: the European Union …